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A Vesting Order was obtained from the High Court of Malaya on 20 March 2006 for the transfer and vesting of the Islamic banking business from Affin Bank to Affin Islamic Bank.

Pursuant to the Vesting Order, the transfer and vesting will take effect on 1 April 2006 whereupon the assets and liabilities comprising the Islamic banking business of Affin Bank (save for the Excluded Assets as defined in the Business Transfer Agreement entered into on 16 January 2006) as at the cut-off date of 31 March 2006 will be transferred to and vested in Affin Islamic Bank. The consideration of the transfer is based upon the net book value of the assets less the net book value of the liabilities being transferred and will be settled by way of cash.

In addition, the Minister of Finance has issued to Affin Islamic Bank an Islamic banking licence under Section 3(4) of the Islamic Banking Act 1983, in which the effective date is 1 April 2006.

Affin Holdings is also pleased to announce that Bank Negara Malaysia (“BNM”) had approved the appointments of Jen (B) Tan Sri Dato’ Seri Ismail bin Haji Omar, Dato’ Abdul Hamidy bin Abdul Hafiz, Tan Sri Dato’ Lodin bin Wok Kamaruddin, Encik Zulkiflee Abbas bin Abdul Hamid and Encik Kamarul Ariffin bin Mohd. Jamil as directors of Affin Islamic Bank. The appointment of Encik Kamarul Ariffin bin Mohd. Jamil as the acting Chief Executive Officer has also been approved by BNM.

The current issued and paid-up capital of Affin Islamic Bank is RM2.00, comprising 2 ordinary shares of RM1.00 par value. Affin Islamic Bank proposes to increase its existing paid-up capital of RM2.00 to RM160 million by way of issuance of new ordinary shares in Affin Islamic Bank to Affin Bank for cash consideration.

Affin Islamic Bank will commence its business operations on 3 April 2006, being the first business day after the transfer and vesting exercise on 1 April 2006.

This announcement is dated 20 March 2006.